Atlanta’s commercial real estate market did not stop in March 2020. As businesses reopen and economic activity prepares for a post-Covid-19 normal across the country, commercial real estate experts at JLL say Atlanta is better positioned than many U.S. cities to recover quickly.
From the region’s deep talent pool to its growing population and from its ideal geographic location to its relatively low costs of living and doing business, Atlanta will continue to be a highly desirable location for companies to grow their business. “There’s going to be pain — no one can deny that,” says Christina De Giulio, JLL Research Manager for the Atlanta region. “But Atlanta went into the downturn in a strong position, and the things that made us attractive before Covid will continue to make us attractive after Covid.”
A diversified economy is usually stronger than one concentrated in a specific industry. Since March, markets that rely heavily on industries such as transportation, hospitality and tourism have seen huge hits. But those high-risk industries make up only about one-third of Atlanta’s employment base, according to JLL data. Professional and business services, government and finance are considered lower-risk sectors, say JLL researchers, and they account for more than half the local employment.
The Atlanta office market has a history of weathering economic downturns better than other metros, according to JLL research. The regional office market bounced back in an average of six years following the dot-com, September 11 and Great Recession crashes, with rental rates falling less than 10% each time — a modest dip compared with the average national drop of 19% and decreases of between 30% and 65% in some metros, including Boston and San Francisco.
Read the full Atlanta Business Chronicle article HERE.
Learn more about Hatteras Sky’s potential Atlanta office developments HERE.